Copyright©2003AccentureAllRightsReserved.Accenture,itslogo,andAccentureHighPerformanceDeliveredaretrademarksofAccenture.TheStateoftheOn-LineTravelMarketplaceEuropeanTourOperatorsAssociationPeterFranz2TheeCommercerevolutioncontinuestoexpanditspenetrationinhouseholdsacrossEurope:3TheOnlineTravelMarketSpendisforecastedtotripleintheEuropeanMarketandDoubleintheUSMarketinthenext4yearsOnlineleisuretravelpurchaseisforecasttodoubleto$49.8bnby2007111110.05.010.015.020.025.030.035.040.045.050.020032004200520062007AirlineticketsHotelsRentalCarsVacationpacakgesRestofTravelOnlineTravelmarket($USbn)$27.8$34$44.8$39.5$49.8TotalOnlineTravelmarket($USbn)USMARKETForresterResearchpredictsonlinetravelexpenditureintheUKwillhit$3bnin2003and$9.6bnin2007,bywhichtimeitwillaccountfor20%ofthetravelindustry.TheUKisthe2ndlargestsourcemarketforTourOperators.010,00020,00030,00040,00050,00060,00070,00080,00090,0002001200220032004200520062007TravelandToursSportingGoodsSalesOtherSalesPersonalCareSalesFootwearSalesSports,ConcertsandEventsTicketsToysApparelGroceryConsumerElectronicsPeripheralsPCsSoftwareVideoMusicBooksTotalSpend(€millions)TotalEuropeanOnlineSpendingperCategory.Onlineleisuretravelpurchaseisforecasttotripleto€26bnby2007EUROMARKETSources:Jupiter.4WiththekeymarketsoftheUKandGermanyaccountingfor50%ofthisspendwithinEurope010,00020,00030,00040,00050,00060,00070,00080,00090,0002001200220032004200520062007GreecePortugalSpainItalyLuxembourgBelgiumNetherlandsFinlandNorwayDenmarkSwedenIrelandSwitzerlandAustriaFranceGermanyUKTotalEuropeanOnlineSpendingByCountryTotalSpend(€millions)5TheeCommercerevolutionhasdrivenchangeinCustomerHabitsandchoicewithinthetravelindustry…..SelfAssemblyofHolidays•CustomersareusingtheinternettotailortheirownholidaychoicesDisintermediationofdistributionchannels•Manycustomershaveremovedthe‘middleman’,precipitatingpricecutsandputtingpressureinmarginsIncreasingcompetition•Asaturatedmarketmeansthatagentsandtravelwebsitesmustdifferentiatetheirofferingandcustomerservicetoensuresuccess6AnothereCommercerevolutioniswaitingtohappenwhereeverythingandeveryonewillbeconnected-RealityOnlineMacroforcesatworkintechnology:•Newbreakthroughs,especiallyinsensortechnologyareabouttoadvancethestateofeCommerce,makingitubiquitousasneverbefore.Soon,notonlywilleveryonebeinterconnected,buteverythingwillbeconnected•Thecollectionandinterpretationofdatawhichwillcreatea‘virtualdouble’•TheevaluationofcustomerperceptionandpreferencethroughSentimentMonitoring•MuchgreatereffectivenessofPersonalisedPricingTools•SignificantimprovementsinbusinessintelligencethroughtheuseofLiveInformationModels7Insightandinformationofthisnaturecanbeharnessedintoprovidinghighlypersonalisedandrelevantproducttotheconsumer….•CustomerlogsontoOnlineTravelMarketplaceoftheFuture•ProductBasedon“VirtualDouble”information•PricePreference/Elasticity•HighlyTailored1:1Marketing•IndividuallyPricedtoFit•‘Alwayson’datacollection•PhysicalandHistoricalCustomerInformation•CustomerSentiment8HowdoIneedtorepositionmyselfintheshorttomediumtermtoreapthebenefitoftheforecastedOnlineSalesuplift?•Customercentricitywillbeakeypointofcompetitiveadvantage-NeedtoUnderstandthechanginghabitsofthecustomer-Makenecessarychangestoprocessesandproducts-FocusonCustomerRetention–matchingtherightproducttothecustomer•InvestmentinTechnologyandyourOnlineMarketplaceofferingmustfocusondrivingcustomerinsightandretention•Arelationshipbasedontrustmustbedevelopedwiththecustomer.Continued‘HumanTouch’isneeded–thecustomerisnotreadyforafulle-worldyet!RightTechnologyandProductOfferingCreatesCustomerSatisfaction/RetentionRightCustomerInteractionPoints–HumanTouchShareofOnlineRevenue
